Aggregate Demand and Supply Curves Have Been Widely Used to Analyze

question 203

Multiple Choice

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy.Figure 5-3 shows four diagrams that represent different changes in the macroeconomy.Choose the diagram that best represents the situations described in the following questions.
Figure 5-3
-An increase in aggregate demand is most likely to result in

• A)inflation.
• B)recession.
• C)economic stagnation.
• D)a decrease in real GDP.

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Definitions:

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Unusual or persistent noise heard in the ears, often referred to as tinnitus.

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The concentration of glucose present in the blood, significant in the diagnosis and management of diabetes.

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A hormone produced in the adrenal glands that acts on the kidney. It causes the body to retain sodium and excrete potassium. Its role is to maintain blood volume and pressure.

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A hormone produced by the pancreas that regulates blood sugar levels by facilitating the uptake of glucose into tissues.